The era of bargain real estate is almost at an end, however with the rise in interest rates, rates tipped to be heading upwards of 8%, there will be a flood of properties coming back onto the market, as investors and first time buyers are no longer able to sustain monthly payments on their mortgages.
The 100% loan offered by St George bank until a year ago may have pushed many a buyer into purchasing properties in their grasp at that moment in time. This, of course became easier as interest rates were lowered by all the banks, and the big four - ANZ, Commonwealth Bank, Wespac and NAB - became that much more competitive, able to encroach on the bargain lending domain, as the margin between wholesale borrowing and retail/commercial lending became minuscule.
The recent Westpac rate rise of 47 points was in fact a strong indication of economic recovery, if anything, a move that will strongly bolster Westpac's image as a solid lender, who really cares about their customers. In the long run, it will remain a strong bank, and its recent acquisitions, St George and Aussie Home Loans, will gain further street cred in the eyes of big-money borrowers.
No comments:
Post a Comment